Analysts rate Saga as a strong company, but are worried over the lack of details about the float. Saga is owned by chairman Roger De Haan and his family. De Haan is selling out and the company will either be floated or bought out by venture capitalists.
Existing customers can pre-register for shares until October 4. You can either complete the form provided or register online at saga.co.uk. If you register you will not be obliged to buy shares should the company float. Non- customers can also register an interest, but if any float is oversubscribed, existing customers will get preference.
Hilary Cook at Barclays Stockbrokers said: “Saga is a niche business and it is unusual because it started out as a holiday company, but has branched out into financial services and media. But the management has done a good job and succeeded in building up a strong brand.”
Saga’s financial-services arm accounted for 89.1% of the group’s £81.6m profits last year. The holiday business made £10.5m. The firm also produces a magazine with a monthly circulation of 1.2m and has radio stations in Glasgow and the Midlands. Its media business recorded profits of £8.3m last year.
In theory, its success should grow because its target market — the over-50s — is expected to double in 30 years.
Advertisement
However, no formal details of any flotation have yet been released. Graham Neale at Killik & Co, a stockbroker, said: “The current owners want to get as much money as they can in the sale, so in the short term there may not be much upside for shareholders. If you are considering registering for shares, you need to look at other incentives.”